Rdio, the streaming music service and Spotify competitor, has confirmed a round of layoffs across the company that allegedly affected 35 employees, or roughly 20% of its staff. Rdio says the layoffs will help to “improve its cost structure and ensure a scalable business model for the long-term.”

The streaming service, cofounded by Skype cocreators Janus Friis and Niklas Zennström, earlier this year launched Vdio, a subscription service for movies and TV shows. The company has raised $17.5 million to date.